lem1955
Recycles dryer sheets
- Joined
- Mar 1, 2007
- Messages
- 315
I retired (for the first time) at the end of Dec 2015. About 7 months later I received a job offer I didn't refuse. It was a small commitment (about 20-30 hours a month) and didn't pay a lot (at that time just under $2K/month). My portfolio was almost entirely in 401(k) converted to tIRA funds. I determined I could and should delay SS to age 70, should convert tIRA to ROTH to the top of the 22% tax bracket, and could use the VPW method to withdraw more than 4% my first year and COL adjustments after that.
Home improvements and travel expenses exceeded my expectations. And in the 5 years 8 months since Jan 1 2016 our withdrawals have averaged 5.8% which is .5% more than the VPW method recommended. Despite that our portfolio has increased 26.8%. Of course, we would have reduced expenditures had the market not performed so well. Just lucky that the market performed as it did.
I'm going to retire again at the end of October. I think it will stick this time! I'm ready to no longer be responsible and now that travel is easier than at the height of the pandemic, I want the freedom. The loss of that part-time income (now $2.5K/month) will mean I can convert a little more tIRA to ROTH. And in the case of a major bear market event, I'll be a year past SS-PIA and my monthly SS would be more than the job income I am foregoing.
I'm still planning to use the VPW method for withdrawals but now that home improvements are done and cars have been updated outsized expenditures are not required, just optional!
I wish you all a similar SRR story.
Home improvements and travel expenses exceeded my expectations. And in the 5 years 8 months since Jan 1 2016 our withdrawals have averaged 5.8% which is .5% more than the VPW method recommended. Despite that our portfolio has increased 26.8%. Of course, we would have reduced expenditures had the market not performed so well. Just lucky that the market performed as it did.
I'm going to retire again at the end of October. I think it will stick this time! I'm ready to no longer be responsible and now that travel is easier than at the height of the pandemic, I want the freedom. The loss of that part-time income (now $2.5K/month) will mean I can convert a little more tIRA to ROTH. And in the case of a major bear market event, I'll be a year past SS-PIA and my monthly SS would be more than the job income I am foregoing.
I'm still planning to use the VPW method for withdrawals but now that home improvements are done and cars have been updated outsized expenditures are not required, just optional!
I wish you all a similar SRR story.
